News & Commentary

Markets

Retail stocks fall as Williams-Sonoma swings to loss

NEW YORK (MarketWatch) -- Retail stocks dropped Wednesday as Williams-Sonoma Inc. swung to a loss with demand for its home furnishings products hurt by the declining housing markets and the recession.

The S&P Retail Index
$RLX
fell 1.3% to 339.10, even after the private sector cut the fewest jobs since November, according to the ADP employment index. Still the decline came after the index posted three straight days of gains, including a 6.1% jump on Monday.

The U.S. private sector eliminated 532,000 net jobs in May, down from an average of 691,000 in the first three months of the year. See full story.

Williams-Sonoma
WSM, -1.63%
stock fell 9% to $13.31. The loss was smaller than the company had projected after it lowered advertising expense as a percentage of its revenue, cut capital spending and lowered merchandise inventories to reduce clearance discounts and other promotions. Still, the company said it's not increasing its projection for the remaining quarters of the year as it's "cognizant of the ongoing volatility in the economy and the potential for promotional pressure." See full story.

Wal-Mart Stores Inc.
WMT, -0.55%
shares were essentially flat at $50.89. In a move to further bolster its discretionary side of merchandise arsenal, the retailer is teaming up with teen star Miley Cyrus and designer Max Azria for an exclusive junior line that includes T-shirts, pants and shoes priced under $20, trade publication Women's Wear Daily reported Wednesday. The company didn't immediately respond to emails seeking comment.

Retail investors also wait releases of retailers' May same-store sales results as retailers were caught in a tug of war between different economic signals, leading to varied economic outlooks. See full story.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.